Optimal planning of urban microgrids with an energy management system

This paper proposes a bi-level planning strategy that optimally configures an urban microgrid to maximize its benefits. The work implores the karush- Kuhn-tucker (KKT) condition to transform the two level formulation into a single level mixed integer linear programing. The optimization strategy receives the modeled thermal and electric load as input and optimizes the output of the distributed energy resources through the implementation of an energy management system (EMS). It further analyzes the available investment options of the microgrid using capital budgeting techniques to determine the return on investment to a microgrid stakeholder. The approach, though applicable to all microgrids, is developed within the context of an urban microgrid. Results obtained through its application show significant savings in energy cost and related microgrid benefits to stakeholders.